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How to Catch the Coming Capex Wave

As Industry Upgrades Equipment, Providers Stand to Profit

March 23, 2014

Warren Buffett foreshadowed a new investment trend in his annual letter to investors this month. He boasted that Berkshire Hathaway subsidiaries had capital expenditures of $11 billion last year, roughly double their depreciation charges.

In other words, they're upgrading plants and equipment twice as fast as they're using them up. Meanwhile, Berkshire spent zero to buy back its shares, because the shares didn't sink below 120% of...